Today : Mar 28, 2025
Business
21 March 2025

Consumer Affairs Agency Orders Yume Group To Pay 65 Million Yen Fine

The Tokyo-based mail-order company misrepresented the cost of masks during the pandemic sales period.

On March 21, 2025, the Consumer Affairs Agency announced that it had ordered Yume Group, a Tokyo-based mail-order company, to pay a substantial surcharge of over 65 million yen for misrepresenting the pricing of 3D masks during the early months of the COVID-19 pandemic. The company was found to have advertised a promotional price that misled consumers regarding the total cost, raising concerns about deceptive marketing practices.

Between March and April 2020, at the height of the pandemic, Yume Group utilized newspaper advertisements to promote 30 packs of 3D masks at a price of 3,600 yen (excluding tax) for a limited period of five days. The ads implied that this was the only cost involved, neglecting to mention additional expenses such as shipping and handling. Such tactics were determined by the Consumer Affairs Agency to violate the Act against Unjustifiable Premiums and Misleading Representations.

The advertisements, which claimed consumers could purchase the masks for the stated price with no hidden fees or additional costs, were misleading. In reality, customers were required to pay shipping and handling fees, and masks remained available at the same price beyond the stated promotional period, further contributing to the misleading impression.

As a result, the Consumer Affairs Agency mandated that Yume Group pay a total of 65.89 million yen by October 22, 2025. The order reflects growing scrutiny of companies that exploit the pandemic for profit, particularly by leveraging misleading practices during a public health crisis.

Yume Group has publicly expressed its dissatisfaction with the ruling, stating, “There are points that we cannot agree with in the Consumer Affairs Agency's decision, and we are considering filing an appeal.” This indicates that the company may challenge the findings and seek to overturn the decision.

Such regulatory actions highlight the need for transparency in advertising, particularly in times of crisis when consumers are particularly vulnerable. The move has been part of a broader trend in which regulatory bodies are increasing oversight of marketing practices, especially those that exploit consumer fears during emergencies.

The COVID-19 pandemic brought about unprecedented demand for health products, particularly face masks. Companies were quick to capitalize on this demand, with varying degrees of adherence to ethical advertising practices. The case of Yume Group serves as a cautionary tale of how misleading marketing can lead to legal consequences.

As public health regulations continue to evolve, so too will the scrutiny on companies that navigate these waters. The Consumer Affairs Agency's ruling against Yume Group is a signal to other companies to ensure their marketing practices are not only legally compliant but also ethically sound.

In conclusion, the incident underscores the essential role that regulatory bodies play in protecting consumers from misleading claims. As businesses continue to adapt to new market realities post-pandemic, they must remain vigilant about their advertising strategies to avoid similar pitfalls.